Good News Britain: UK has one of the most diverse car sectors in the world, says Vince Cable

Japanese car maker Nissan's announcement that it is investing £250m at its
Sunderland plant and creating around 1,000 new jobs is another example of
the strength of Britain’s automotive sector.

Over the last two years global vehicle manufacturers have committed £6bn to projects in the UKPhoto: AFP

By Vince Cable

6:45AM GMT 19 Dec 2012

In the late 1970s and 80s the UK car industry was believed to be heading for extinction. It is now one of our strongest industrial success stories in large part down to big commitment by foreign investors; Nissan, Tata (Jaguar Land Rover), Toyota, BMW (Mini), Ford, Honda and others.

Over the last two years global vehicle manufacturers have committed £6bn to projects in the UK. We have the most productive plants in Europe. Last year we exported over 80pc of the 1.4m vehicles and 73pc of the 2.5m engines we made in the UK. The industry is expected to make 2m vehicles in the UK by 2015 to meet global demand.

We have one of the most diverse auto sectors in the world. There are more than 40 companies manufacturing vehicles in the UK, nine out of the top 10 suppliers, as well as a world-class automotive design engineering sector. We lead the world in performance vehicles and Formula One with names like Aston Martin and McLaren.

But the UK is not immune from what’s happening in Europe. This is a global industry and the UK must look to compete in areas where our manufacturers have a cutting edge.

That’s why we are supporting UK auto companies through the Automotive Council - a collaboration between business and Government - to stimulate new technologies and build stronger supply chains. On supply chains, more than £1bn-worth of potential contracts have been identified through the Council which manufacturers want to place in the UK and are doing so.